Warren officials silent about whistleblower lawsuit settlement

Tight-lipped Warren officials have unanimously approved a settlement in a lawsuit but refused to identify the case and terms of the agreement. But a source tells The Macomb Daily that the settlement involves the whistleblower lawsuit filed last summer against the city and Mayor James Fouts by a former appointee of the mayor.

A proposed settlement of the lawsuit filed by former government efficiency coordinator James Hartley was a last-minute addition to the City Council’s agenda Tuesday night. However, members did not reveal for audience members or viewers at home which case they planned to discuss. More than three hours later, council members headed into a closed meeting, again without revealing the parties to the case.

“I know nothing about this lawsuit right here,” said Councilman Scott Stevens in requesting an immediate closed-door meeting while referring to an unspecified document. “There is not even a dollar amount listed on this as a matter of fact.”

Twenty-six minutes later, council members reconvened in the open session. The council took less than 30 seconds in voted 7-0 to approve a settlement but without mentioning the high-profile case and with no questions, debate or other discussion.

Advertisement

After the meeting, council members refused to tell The Macomb Daily which case was at hand and why they didn’t reveal it to the audience hours earlier or when they voted on the settlement.

“The suit is settled, the parties have settled into it and that’s all I’m going to comment,” said Councilman Patrick Green, who made the motion to approve the settlement on the city’s behalf.

When asked to identify the case at hand, City Attorney David Griem said nothing for several seconds while gathering his items. He eventually responded, “Have a merry Christmas.”

“We acted in the best interests of the residents of the city,” said Stevens, refusing to elaborate. Pressed further, the council secretary confirmed his question about the settlement amount was answered during the executive session.

“I’m never pleased when the city is sued,” he said. Asked whether the agreement included a confidentiality clause prohibiting the council from discussing the terms, Stevens replied: “Yes, there is.”

“We acted in the best interests of the city of Warren overall,” echoed Councilman Steven Warner. When asked to explain how secrecy protected residents and taxpayers who must foot the bill for all or part of the secret settlement and legal fees by outside attorneys who also worked on the case, he replied: “That’s all I can say at this time.”

Hartley left his job last June and filed the lawsuit on July 19 in U.S. District Court in Detroit, claiming he was the victim of on-the-job retaliation for secretly recording two of his phone conversations with the mayor and providing those recordings to Michigan State Police.

Warren and Fouts missed multiple deadlines to file an “answer” to the civil complaint. Hartley’s attorney never sought enforcement of subsequent deadlines by U.S. District Judge Robert Cleland, in part because the city requested additional time to boost the size of Warren’s defense team. Later, both lawyers on sides agreed to bring a facilitator on board to expedite settlement talks.

An unspecified number of “facilitators” – an independent third party such as a retired judge or other attorney – had been contacted by the lawyers in an effort to reach a settlement in the case, according to court records. It’s not clear whether one was selected.

Hartley worked as Warren’s “Citistat” coordinator, a data-driven method of improving government efficiency.

In the two recorded phone conversations with Fouts, the mayor angrily used profanity in blaming some of his political woes on ex-assistant city attorney Jeffrey Schroder and former communications director Joe Munem.

After a Michigan State Police investigation that included a detective’s interview of Fouts, the Macomb County Prosecutor’s Office ruled in May that the mayor broke no laws, in part because Munem and Schroder were not participants in the phone conversations.

In a letter to the mayor dated June 17 -- his last day on the job – Hartley claimed he had been stripped of his normal job duties, blocked from his office, that his email was removed and that he was assigned to count auto parts by hand.

Fouts later publicly apologized for his use of profanity, claiming he spoke out of anger. He has repeatedly claimed he felt his trust in Hartley in a private conversation, was betrayed. He later said there was no intent to fire Hartley.

In addition to his claim under Michigan’s Whistleblower Protection Act, Hartley alleges violation of his constitutional rights of free speech, freedom of association and freedom to petition the government.

He sought unspecified compensatory and exemplary monetary damages, and a return to his job, which had a salary of $66,933.